EUR/usd
American stocks made a considerable breakout on Friday. The U.S. broad market index S&P 500 closed the pre-Christmas trading session above the 200-day moving average, but, what is more important, went positive at year-end. This surplus is minimum – just 0.6%, but it is still attracting a great deal of attention. Generally speaking, breaking of the 200-day moving average is a strong bullish signal for the stock exchanges. But now skeptics stronger than ever claim that it's nothing more than the Santa Claus rally and wants confirmation. These talks have already caused a slump of the Asian exchanges. On Tuesday morning they corrected the advance made on Monday. Nevertheless, the forex markets are still keeping quiet. After sluggish trading on Monday the single currency has found itself exactly at the same level as at the beginning of the week. Now, the EUR/USD is at 1.3075 level, approaching the downtrend line formed at the end of October. As for important market news, today there will be published the CB Consumer Sentiment Index. The markets are expecting the further growth of this indicator after the October minimum. If these expectations were surpassed, the positive sentiment in the markets could be supported and a slightly upward trend – preserved (see pic.).
GBP/USD
The pound keeps moving in the upward channel, but bears give it no chance to speed up. As has already been mentioned, the GBP/USD is being fought for on the attempts to go above 1.57. Now it is trading near 1.5633. It's not worth expecting any big shifts here today as Britain is still celebrating X-mas. Speaking about national news, yesterday's Tube strike in London is of interest. Labor unions demand extra pay for staff working on the Boxing Day public holiday, which they've been refused not once. Everyone in Britain is tightening the purse strings. And this by all means does no good to household consumption. The EUR/GBP decline also attracts attention. Now the pair is trading near the two-year lows. If the situation in the euro zone continues to affect the euro lowering it against the pound, the competitive devaluation can be forgotten, since 60% of total exports go to the euro area.
USD/JPY
The Japanese yen doesn't dare to put up a strong resistance, despite the rise in stock markets on “the Santa Claus rally”. Thus, the break-down of 78.00 has not yet been confirmed, the USD / JPY has dipped below 77.90. The markets are in a choppy trade, slipping between -2% and -0.7% at midday. As has been expected, the USD/JPY is about to get involved in a very interesting battle, though the main scramble may be postponed to next week when volumes will return to the markets.
AUD/USD
The Australian dollar has slightly corrected in the course of trading on small volumes and after the correction of Asian bourses on Tuesday. Technically aussie has closed the gap which formed at the opening of Monday's trade. The pair is now 1.0150. There is hope that it will remain above parity till the end of the year.
